Medtronic’s $738m deal with insulin maker at risk

Insulet has been awarded a preliminary injunction against EOFlow on its insulin patch pump products | Dispute and injunction come ahead of Medtronic’s planned $738m acquisition of EOFlow.

Insulet has been awarded a preliminary injunction in the latest development in its trade secret dispute against EOFlow, involving an insulin treatment for diabetes.

The order, from the US District Court for the District of Massachusetts, prevented South Korean company EOFlow from selling its insulin patch pump that allegedly uses trade secrets stolen from Insulet.

Insulet released its Omnipod system that created tubeless, wearable insulin delivery systems.

In the original suit, filed by Insulet in August 2022, the Massachusetts-based company described its product as “the first ever adhesive, waterproof, wearable, and disposable insulin patch pump”.

The Insulet pump additionally has a wireless, handheld component, called the ‘Personal Diabetes Manager’ that allows consumers to manage their doses.

EOFlow’s insulin pump, the EOPatch, is a waterproof, disposable insulin patch pump that holds up to 3.5 days worth of insulin, and which can connect to a smartphone for the management of the pump’s insulin doses.

In the suit, Insulet described EOFlow’s product as “virtually indistinguishable from Insulet’s Omnipod System”.

The complaint additionally claimed that EOFlow “launched a plan to brazenly copy Insulet’s Omnipod System,” as EOFlow had hired former Insulet senior executives and employees to oversee the development, manufacturing, regulatory approval, and marketing of the EOPatch.

EOFlow also entered into a “joint development and collaboration” contract with Insulet’s primary contract manufacturer of the Omnipod products, Flex.

Flex possessed details of Insulet’s proprietary and confidential manufacturing processes through its own manufacturing agreement with Insulet, said the complaint.

The latest preliminary injunction comes ahead of Medtronic’s planned $738 million acquisition of EOFlow.

The complaint from Insulet outlined that Medtronic mooted acquisition had been motivated by the EOPatch product.

It warned that: “If it completes that acquisition, Medtronic will effectively be outsourcing the theft of intellectual property to bring to market a patch pump that it has repeatedly tried and failed to develop on its own.

“The disclosure of Insulet’s trade secrets to Medtronic—a competitor with virtually unlimited resources—will [cause] immediate and irreparable harm to Insulet and effectively rob all value from Insulet’s trade secrets,” said the suit.

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